DAX continues to climb

The German index tentatively moves higher ahead of tonight’s Federal Open Market Committee statement.

With the FOMC due to make a statement regarding the reduction of its debt-purchasing scheme, traders were always going to be cautious today. Considering the correction the index had at the end of last week and on Monday, an argument could be made that a large proportion of these worries had already been factored in.

This morning has seen both the basic materials and financial sectors help prop up the Germany 30. More specifically, Volkswagen, Siemens and BASF look to have contributed the most to this mildly bullish performance. Deutsche Bank has been in the news today as well, stating that it will be cutting the total employee compensation for their investment bank arm by 23%. These will see the pool for salaries and bonuses cut from €1.3 billion down to €1 billion.

The index is still some 300 points away from the highs of last week, but it has moved back up above the 50-day moving average. Any trades taken today ahead of the important US figures should be done with real caution. 

Germany 30 chart

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